US GDP data dampens sentiment for dollar, pushing it lower against loonie

On Friday the greenback slipped against its Canadian counterpart, as demand for the US dollar was dampened after data showed that the U.S. economy grew less-than-expected in the last quarter.

USD/CAD hit 1.2450 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2492, shedding 0.20%. Cable was likely to find support at 1.2359, the low of February 17 and resistance at 1.2624, the high of February 23.

The Bureau of Economic Anaysis said in a report that the U.S. gross domestic product expanded by 2.2% in the fourth quarter of 2014, below initial estimates for a growth rate of 2.6% but above expectations for 2.1%.

Separate reports showed that U.S. jobless claims rose more-than-expected last week and U.S. consumer prices dropped more than intially estimated in January, undermining optimism over the strength of the country's economic recovery.

The Canadian dollar shrugged off data on Thursday showing that consumer prices fell 0.2% last month, compared to expectations for a 0.3% decline, after a 0.7% drop the previous month.

Core consumer prices, besides the eight most volatile items, rose 0.2% in January, exceeding expectations for a 0.1% uptick, after a 0.3% fall.

The loonie was rose versus the euro, with EUR/CAD slipping 0.15% to 1.3994.

The U.S. is expected to release reports on pending home sales, business activity in the Chicago region and consumer sentiment later in the day.